January 29, 2019
Company name:
Representative:

Inquiries:
Tel:

ES-CON Japan Ltd.
Takatoshi Ito, President &Representative Director(TSE 1st Section, code: 8892)
Minoru Nakanishi, Senior
Managing Director+81-6-6223-8055

Notice on Final-Year Revisions to Medium-Term Management Plan “IDEAL to REAL 2019”
ES-CON Japan Ltd. (ES-CON Japan) announces that it resolved at its board of directors meeting held
today to make the following upward revisions to the final fiscal year of its second medium-term management
plan, “IDEAL to REAL 2019.”
1. Performance Plan Revisions(Unit: Millions of yen)
FY2019FY2018(Revised(Forecast announced(Change)(Actual)(Initial plan)plan)Dec 10, 2018)
74,800+14,800
44,72453,900 60,000-62,000
70,250+12,450
41,16850,270 57,800-59,700
4,300+2,3003,459
3,270
2,000-2,100

FY2017

Net sales
Real estate sales
Real estate leasing
Real estate planning,brokerage andconsultation
Operating income
Ordinary income

96360

200250

+50

7,042
5,988

11,50010,4508,200-9,500
7,200-8,500

12,500
11,200+4,300+4,000In the first two years of IDEAL to REAL 2019, its second medium-term management plan, lasting the three
years from FY2017 to FY2019, ES-CON Japan achieved steady performance with higher sales and income
than initially planned.
Furthermore, due to ES-CON Asset Management Ltd. (ES-CON AM), the wholly-owned subsidiary of ESCON Japan, obtaining approval to list investment units issued by ESCON JAPAN REIT Investment
Corporation (ESCON REIT), whose assets are entrusted to be managed by ES-CON AM, on the J-REIT
market as well as the transfer of ES-CON Japan’s commercial facilities and commercial land to ESCON
JAPAN REIT and steady performance in land purchasing and condominium sales for ES-CON Japan’score sales business, forecasts for sales and income in the final fiscal year, FY2019, are higher than initiallyplanned as well.
2. Management Indicator Plan Revisions

Equity ratio
ROE (return on equity)
ROA (return on assets)
ROIC (return on invested capital)
EPS (earnings per share)

FY2017FY2018(Actual)(Forecast)

24.8%
28.1%
6.8%
8.4%
81.77 yen

25.2%
29.8%
7.4%
8.4%
107.2 yen

FY2019(Revised(Initial plan)
plan)
22.6%
33.0%-35.0%
25.9%
18.0%-21.0%
6.1%
6.0%-7.0%
6.9%
7.0%-9.0%
75 yen-85 yen 115.1 yen(Change)(Note) ROIC (return on invested capital): After-tax operating income / (shareholders’ equity + interest-bearing liabilities)-1--10.4
+7.9
+0.1
-0.1
+40.1

The main reason for the planned equity ratio not being achieved was that inventory assets increased as aresult of aggressive purchasing of development real estate to maintain continued company growth. Throughcontinued company growth, ES-CON Japan will work to not only enhance shareholder returns but improvethe equity ratio with income accumulation.
Reference
Basic Policy and Growth Action Plan in the second medium-term management plan, “IDEAL to REAL 2019”
1. ES-CON Japan will turn the ideals of “IDEAL to REAL 2019” into reality and create a new future.
We will follow our basic policy of putting our customers first, fully accomplishing our mission as “LifeDevelopers” who develop the living styles of our customers and continuing to evolve and grow as acompany indispensable to society.
Corporate Strategy(1) Maximize corporate value and shareholder returns(2) Establish a firm management foundation that can weather any economic climate(3) Diversify business to achieve steady, continuous growth(4) Focus on building a firm business foundation (quality) rather than expanding in size (quantity)(5) Fulfill our corporate social responsibility by achieving returns not only for shareholders but all
stakeholders, including society
2. Growth Action Plan
(1) Continue to reinforce core businesses(2) Increase corporate value by diversifying multiple core businesses(3) Ensure steady, long-term stock income by actively expanding real estate leasing(4) Expand real estate sale by steadily supplying quality properties as the main sponsor of a listed REIT
(5) Expand the breadth and depth of our real estate development capabilities by enhancing real estateoperation(6) Enhance the corporate brand(7) Create new value and achieve sustainable growth through ESG initiatives-2-